Apple Faces First EU Fine Under Digital Markets Act

Apple is poised to become the first company fined under the EU’s Digital Markets Act (DMA), with a penalty expected to be announced this month due to alleged anti-steering practices that hinder app developers from directing users to cheaper alternatives outside the App Store. This fine follows a previous €1.84 billion ($2 billion) penalty imposed in March for similar anti-competitive behavior, particularly in relation to complaints from Spotify. The DMA allows fines of up to 10% of a company's global revenue, which could amount to as much as $38 billion based on Apple's latest annual revenue. The EU aims to establish a precedent with this ruling, sending a message to other tech giants about adhering to regulations designed to promote fair competition. Apple is also under scrutiny for potentially undermining alternative app stores and faces ongoing investigations concerning its app ecosystem policies. This situation highlights the increasing regulatory pressure on major tech companies as the EU seeks to ensure consumer choice and market fairness.